Electric Vehicle Market

Global Electric Vehicle Market Size (2024 to 2029)

The global electric vehicle market size is expected to reach USD 5018.02 thousand units in 2024 and reach USD 13899.03 thousand units growing at a CAGR of 22.6% from 2024 to 2029.

CURRENT SCENARIO OF THE GLOBAL ELECTRIC VEHICLE MARKET

An electric vehicle uses electricity to operate, unlike other vehicles that run on fuel. The electric motor installed supplies constant energy from the batteries and does not have any internal combustion engine.

Lithium-ion, zinc-air, molten salt, and other nickel-based design batteries are some varieties of batteries used for electric vehicles. Electric vehicles are specially designed to reduce environmental pollution. With the latest technological advancements in electric vehicles, many people are inclined to adopt these vehicles. The global share of electric vehicles is expected to increase from 2% in 2016 to 30% by the end of 2030. Electric vehicles can be charged through electricity and are environment-friendly vehicles.

MARKET TRENDS:

The growing prevalence of reducing air pollution across the world by adopting electric vehicles rather than vehicles running on fuel is a huge factor propelling the demand for the electric vehicle market. In addition, government support for the manufacturing of electric vehicles with the latest technologies is a major electric vehicle market trend.

MARKET DRIVERS: 

Increasing demand to reduce carbon emissions is a key factor driving the demand of the market.

Growing awareness over the launch of different electric vehicles with the latest features is enhancing the demand of the market. In many countries, government organizations are highly investing in electric vehicles that are leveraging the growth rate of the market. In addition, creating awareness through digital platforms is greatly influencing the demand in the electric vehicle market. Rising demand for zero-emission vehicles is likely to fuel the market demand. Also, the launch of various schemes in favor of the end users by companies is increasing the growth rate of the electric vehicle market. The introduction of vehicles with advanced features is anticipated to level up the growth rate of the electric vehicle market revenue.

In the future, the demand for electric vehicles will increase randomly across the world due to increasing rates of fossil fuel. This attribute is anticipated to bolster the demand of the market to an extent. Decreasing fossil fuel reserves impels the growing prices of petrol and diesel, which is escalating the growth rate of the electric vehicle market. The electric vehicle has the capacity to convert 50% of electrical energy from the grid, which is escalating the demand for the market. E-commerce companies like Amazon and others are adopting electric vehicles to reduce carbon emissions, which is accelerating the demand for the electric vehicle market. The government plans to launch many electric buses as public transport, especially in developed and developing countries, to bolster the demand of the market. Collaborations between the market players to bring an advanced version of electric vehicles with updated features are boosting the demand of the market. Focus on launching lower-cost electric vehicles by automobile companies with the latest technologies to fuel market growth.

MARKET RESTRAINTS:

However, electric vehicles are high in cost, and common people cannot afford them, which is slowly restricting the demand in the electric vehicle market.

The lack of skilled technicians and high maintenance techniques are hampering the growth rate of the market. Increasing risks of vehicles on long journeys are slightly impeding the demand for electric vehicles. Stringent rules and regulations by the government in approving new technologies are big challenging factors for the market players. The rising cost of the raw materials used to manufacture the electric vehicle is increasing the cost of the end product, which is limiting the demand of this market. The lack of proper charging stations is restraining the growth rate of the market. 

The Impact Of COVID-19 On The Electric Vehicle Market:

The sudden outburst of the COVID-19 pandemic led to huge losses for the companies. Ban on flights and strict lockdown restrictions in 2020 brought many changes for the company. In the initial pandemic days, all the companies were completely shut down due to restrictions imposed by the government that lowered the production and sales of new vehicles. Operative equipment manufacturers were halted till the government released unlock guidelines. In 2021, all companies slowly resumed their activities according to instructions from the government, where the demand for the electric vehicle market is slowly rising. The electric vehicle market shares are soon to hit the highest CAGR.

 REPORT COVERAGE:

SEGMENTAL ANALYSIS

Global Electric Vehicle Market By Vehicle:

The passenger car segment is thriving with the largest shares of the electric vehicle market. Growing rules from the government to reduce environmental pollution and rising awareness are mainly fueling the demand for this segment. In Asia Pacific, the demand for passenger cars is very high, followed by Europe and North America. High support from the government through investments in the production of electric vehicles is promoting the demand of this segment to an extent.

The commercial vehicle segment is to have the highest CAGR in the near future. Two-wheeler segment shares are growing tremendously with the increasing adoption of these vehicles by e-commerce.

Global Electric Vehicle Market By Propulsion:

The battery-electric vehicle segment is expected to reach the highest shares of the market, followed by fuel-cell electric vehicles.

Global Electric Vehicle Market By Components:

The battery cells & packs segment is leading with the dominant shares of the market in the coming period.

Global Electric Vehicle Market By Charging Station Type:

The supercharging segment is to have the dominant shares owing to the launch of products with advanced technology.

REGIONAL ANALYSIS:

North America holds the dominant share of the electric vehicle market. Rising per capita income and growing investments in the automobile industries are elevating the demand of the market. Creating awareness to reduce environmental pollution in all countries is greatly promoting the demand of this market in North America. In emerging countries like the US and Canada, the demand for electric vehicles has been very high in the past few years. The rapid adoption of technological advancements in automobile industries is quietly gearing up the growth rate of the electric vehicle market. The government set up a target to increase the production rate of electric vehicles by 2050, which is likely to level up the demand of the market.

Europe is next in holding the largest shares of the electric vehicle market. High disposable income in urban areas and the growing prevalence of electric vehicles with increasing fuel prices are promoting the demand of the market in Europe. Also, support from the government in providing subsidies for electric vehicles is impelling the demand of the market. Countries like Germany and the UK are focusing on introducing new electric vehicles with advanced technologies at a lower cost, which is gaining more traction over the shares of the market.

Asia Pacific is expected to have the highest CAGR in the coming years with increasingly stringent government rules and regulations to promote zero-emission vehicles. India and China are major contributors to the market shares. China's electric vehicle market has the highest growth opportunities. Installing electric charging stations with good infrastructure is a key driving factor for the market to grow in China. India is planning to increase the sales of electric vehicles by introducing electric buses in urban areas. The launch of innovative techniques is accelerating the growth rate of the electric vehicle market.

Latin America is to have a substantial growth rate in the coming period. Middle East and Africa's electric vehicle market revenue is expected to have a slow growth rate during the forecast period 2022 - 2027.

KEY PLAYERS IN THE ELECTRIC VEHICLE MARKET: 

Tesla, BMW Group, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, General Motors, Daimler AG, Energica Motor Company S.p.A., BYD Company Motors, Ford Motor Company. Are playing a dominant role in the global electric vehicle market.

 RECENT HAPPENINGS IN THIS MARKET:

• In May 2019, Hyundai showcased the new ionic electric version of its vehicle. This vehicle’s battery is increased to 38.3 kWh from 28 kWh.
• In November 2019, BYD launched the e3 electric sedan in China, which has a range of around 252 miles. This was manufactured with battery options 35.2 kWh and 47.3 kWh with a single 70 kW electric motor.
• In March 2020, 2^nd generation vehicles named 330e and 330e xDrive were launched by BMW. The launch of these vehicles leveled up the shares of the company in the market, which expanded the portfolio.
• In November 2020, the Leaf model vehicle with a battery choice between 40kWh and 62kWh was introduced by Nissan in the US.
• In 2021, a new C40 recharge model was showcased by Volvo that is designed with advanced features. This is a pure electric car with similar features to the XC60 model.

DETAILED SEGMENTATION OF THE GLOBAL ELECTRIC VEHICLE MARKET INCLUDED IN THIS REPORT

This market research report on the global electric vehicle market is segmented and sub-segmented into the following categories. Based on vehicle, propulsion, component, charging station type, vehicle class, and Region.

By Vehicle

•  Passenger Car
• Commercial Vehicle
• Two wheeler

By Propulsion

• Battery electric vehicle (BEV)
• Fuel cell electric vehicle (FCEV)
• Plug-in hybrid electric vehicle (PHEV)
• Hybrid electric vehicle (HEV)

By Components

• Battery Cells & Packs
• On-Board Charge
• Infotainment
• Electric Motor

By Charging Station Type

• Normal charging
• Supercharging

By Vehicle Class

• Mid-Priced
• Economy
• Luxury

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa